Suffolk backs drug firms' expansion plans

Two drug companies in Suffolk County that want to expand received government backing last week.

The board of directors of the county's industrial development agency took action on proposals from AmerisourceBergen Corp. and Contract Pharmacal Corp.

AmerisourceBergen, the giant pharmaceutical wholesaler based in Pennsylvania, hopes to buy Newsday's former collating plant in Melville. The company has outgrown a 114,000-square-foot rented warehouse in North Amityville that it inherited in 2007 by acquiring Bellco Health.

AmerisourceBergen now plans to buy the 186,148-square-foot building at 25 Deshon Dr. for $10.5 million. That location is owned by Newsday's former parent, Chicago-based Tribune Co., which is in bankruptcy, according to a person familiar with the deal who requested anonymity on Friday. The paper vacated the building last year.

A Tribune spokesman would not comment on the sale. Newsday was sold to Cablevision Systems Corp. of Bethpage in 2008.

AmerisourceBergen plans $4.7 million in building renovations, including raising the roof 12 feet and installing $12.6 million in machinery. It sought a 10-year abatement on property taxes and exemptions from sales and mortgage recording taxes.

The value of the incentives wasn't known Friday, but Jim Morgo, the development agency's chairman, said they would only apply to building improvements and new investment.

AmerisourceBergen vice president Barbara Brungess said, "The New York market is growing, and we're continuously exploring ways to accommodate that growth." The company doesn't expect the move to Melville will increase its local workforce of 125 people.

The development agency also gave final approval for $2.46 million in tax breaks over 15 years to Contract Pharmacal, a manufacturer of prescription drugs, vitamins and dietary supplements for large drug firms and retailers.

The second-generation, family-owned business expects to invest up to $6 million in its three buildings in the Hauppauge Industrial Park. The spending is on top of $25 million in upgrades over the past three years, including the opening of the third building last month.

Contract Pharmacal hopes the new project will add 30 jobs to its workforce of 430.

"We're always trying to increase our efficiency and enhance productivity," said chief executive Matt Wolf. "The Suffolk County IDA has been very supportive over the years."